Honda Motor Company and consumer electronics manufacturer Sony Group announced in a joint statement that they are reviewing the future of their battery electric vehicle (BEV) joint venture, Sony Honda Mobility Inc (SHM), following the Japanese automaker’s decision to scale back its global BEV programme.

SHM was established in September 2022, with the aim of “developing and selling high value-added mobility products and providing mobility-related services by combining the technologies, expertise, and development capabilities of Sony and Honda.”

Earlier this month, Honda announced it was rolling back its BEV programme in response to changes in the global marketplace, including cuts in US BEV incentives which have significantly impacted local demand. The automaker announced a US$ 16 billion charge in the fiscal year ending in March 2026, mostly to cover restructuring costs following the cancellation of three BEV models that were scheduled to go into production in the US in the next few years.

SHM said in a statement: “As a result of Honda’s reassessment of its automobile electrification strategy, and factoring in the changes to the EV market, the underlying assumptions of SHM’s business operations, such as the utilization of certain technologies and assets planned to be provided by Honda were fundamentally altered, resulting in the announcement by SHM today to discontinue the development and launch of its first model, the Afeela 1, and its second model. At the same time, Sony, Honda and SHM have determined to review SHM’s business direction.

Sony, Honda and SHM will continue to discuss and evaluate the future of SHM, taking into account the initial purpose for the establishment of the joint venture as well as the latest EV market environment, and intend to jointly announce SHM’s future direction, mid- to long-term positioning as well as contributions to the future of mobility at the earliest possible opportunity.”